Crypto Mixing Service Bitcoin Fog Founder Convicted of $400M Money Laundering
A Washington federal court jury has found Roman Sterlingov, 35, the founder of crypto mixing service Bitcoin Fog, guilty of money laundering.
Key Points:
- Roman Sterlingov was found guilty of helping to launder tens of millions of dollars from darknet markets.
- Govt claims Bitcoin Fog processed $400 million in transactions.
- Sterlingov faces up to 20 years in prison on the most serious charges and will be sentenced on July 15.
- Sterlingov maintained his innocence, claiming he didn’t remember creating the Bitcoin Fog domain name.
According to Bloomberg, Sterlingov helped to launder tens of millions of dollars from darknet markets known for selling illegal drugs.
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Sterlingov, a Russian-Swiss national, provided a service that mixed digital tokens to obscure the source of proceeds from illegal activities.
Government claims Bitcoin fog processed $400 million in crypto transactions
According to the government’s allegations, Bitcoin Fog facilitated over $400 million in transactions that could not be traced. Sterlingov, if convicted on the most severe charges, could face a maximum sentence of 20 years in prison, with the sentencing scheduled for July 15.
Throughout the month-long trial, the prosecution presented evidence demonstrating how authorities tracked the movement of cryptocurrencies from darknet markets through Bitcoin Fog. Additionally, they emphasized a multi-step procedure that Sterlingov purportedly employed to purchase the Bitcoin Fog domain name more than a decade ago.
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Sterlingov insisted that he worked in information technology, assisting clients with domain name creation while working for a marketing and web company and as a freelancer. In addition, he claimed not to remember whether he created the Bitcoin Fog domain name and doubted his involvement.
The defense argued that there was no evidence directly linking Sterlingov to the operation of Bitcoin Fog, pointing out the lack of eyewitness accounts, server logs, or references to the service on Sterlingov’s electronic devices or notebooks.
Despite the defense’s arguments, the jury found Sterlingov guilty on all four counts. This included conspiring to launder money, money laundering, and two charges related to failing to register a money-transmitting service.
The conviction of Sterlingov follows the November conviction of FTX co-founder Sam Bankman-Fried. Additionally, this highlights the U.S. government’s ongoing efforts to crack down on crypto-related crimes.
